Looking to invest into mutual fund ? We will help you to make your decision better in terms of tax effects, returns and your goals. Mutual Funds Investment A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities. To match the investment objectives stated in its prospectus a mutual fund’s portfolio is structured and maintained. Professional money managers operate mutual funds to allocate fund’s assets and attempt to produce capital gains or income for the fund’s investors. How to start Mutual fund investment With fund house, you need to open an account and complete your KYC, to start a mutual fund investment. Many investors find tough to create a mutual fund portfolio, which is next step. First, few schemes with credible long term performance record needs to be shortlisted. To understand its performance history of shortlisted funds, you should analyse its short and long term returns. Next, pick the ones that are in line with your risk profile and investment objectives. To invest in mutual funds there are two opinions. Mutual fund investment guide for beginners Mutual funds investment benefits: As an investor, either you can manage your finances yourself or hire a professional firm. You can opt for the latter when: The best benefits of Mutual Funds is Professional fund management. There are no reason why one should look at any other investment avenue other than us. Mutual Funds Investment Short and Long Term: An investment holding period of one year or less, the tax rules defines it as short term. Selling such investment that was held for less than 12 months is known as short term gain or loss. Longer than one year investment hold or sold for a profit or loss will produce long term gain or loss. The important difference is that different rates are taxed to long term and short term capital gains. Lower rates are taxed to long term gains. A mutual fund must distribute net capital gains to shareholders at least once a year. Most mutual funds total up short and long term gains for the year and make the distributions during the last couple of weeks of December. Mutual Fund Investment Process/Procedure: Primary and secondary processes are 2 steps to follow for investing in Mutual Funds. The primary process is more to facilitate the process and help you become a mutual fund investor. The second step you are able to invest in the right fund, as it is more customized filters. The first step ie primary process ie KYC needs to be completed before starting your investments in the mutual funds. In the second step you need to take a call between lumpsum and SIP. Five basic things to review of the fund factsheet before the final investment in the fund: Mutual fund investment process of your must be a combination of regulatory process and the analytical process. That is a good start to your investment journey. Mutual Fund Risk: In term of standard deviation of an asset class risk could be measured. Risk can be below types: The higher the potential return, the higher the level of risk involved. To invest in mutual fund get in touch with our tursted experts.